Arcona Property Fund N.V.
The management of this NYSE Euronext Amsterdam-listed closed end property fund was taken over by Arcona Capital in February 2012. A three stage stabilisation and recovery plan was then launched. Between 2012 and 2014 operating costs and vacancy rates were sharply reduced. Between 2014 and 2016 the debt finance was completely restructured. Since 2016 the Fund has been growing fast, increasing its allocations to the convenience retail sector and expanding into Poland, Bulgaria and Ukraine. In Poland, which is designated as a core market, the Fund´s portfolio comprises 10 neighbourhood shopping centres and a modern office building, all acquired since 2017. Arcona Capital´s asset management team in Warsaw has implemented a new brand concept for the shopping centres and steadily improved the tenant mix since acquisition. The Fund´s Gross Asset Value is around €100 million.
For more information: https://www.arconapropertyfund.nl/
Lighthouse Mandate
In February 2016 Arcona Capital completed the acquisition of a portfolio of eight Albert-anchored hypermarket centres and four associated retail parks in the Czech Republic for Lighthouse, one of our seven managed investment entities. The vendor was Atrium European Real Estate and the purchase price was in the region of € 100m to show an 8.2% initial yield. The properties are in Prague and seven other Czech cities. At acquisition, Albert generated 82% of the annual rent on Ahold corporate backed leases with a 9.5-year weighted average lease term. Other tenants included SPORTISIMO, KIK, dm drogerie, Takko and Deichmann. These acquisitions added substantially to the Lighthouse portfolio, which also includes the B&O production facility south of Ostrava, CZ, acquired through a sale and leaseback in 2014.
Yellow Properties
Yellow Properties is an 84-unit residential project branded "Drahobejlova Residence" in Prague’s vibrant 9th district. Arcona Capital was responsible for the project’s development management and sale, which was a joint venture between two of our managed funds (MEOF II and the Arcona Property Fund). Construction commenced in November 2012 and practical completion took place in October 2014, with all units now sold. Construction finance was arranged through Raiffeisen Bank CZ and construction was undertaken by BauStav of Karlovy Vary.
Hostín Development, Czech Republic
"Bydlení Úvaly" is a large suburban residential development on a site of approx. 35,000 m2 in Úvaly, on the eastern borders of the city of Prague, owned by Hostín Development s.r.o. Arcona Capital is responsible for the project’s development management and sales. The development was divided into several phases. Construction of the first and second phases, comprising 66 apartments in 4 blocks, has now been completed and all units sold. Phase 3, comprising 22 family houses, commenced in Spring 2020, with development finance being provided by Unicredit Bank CZ and construction undertaken by BauStav of Karlovy Vary. Pre-sales of the houses are approaching a level of 50%.
For more information: http://www.bydleniuvaly.cz/
Portfolio Management Germany
In January 2017 Arcona Capital was appointed by international clients to implement management, supervision and control over a substantial mixed-use real estate portfolio in central Berlin. Comprising 8 prime assets, a major development project and a yet to be developed site, the portfolio had over 60 tenants and an estimated value in excess of Euro 300 000 000.
AC Vastgoed Nederland C.V. (former Steenwell and Aefides Funds)
In July 2016 Arcona Capital took over the management of 10 closed-end funds in the Netherlands holding 15 commercial real estate assets on behalf of ca. 700 private investors. The occupancy rates of the assets averaged 72% and the debt obligations substantially exceeded the total value of the portfolio. Within 28 months all the fund entities were restructured into a new structure (AC Vastgoed Nederland C.V.) to permit cross-collateralization of obligations and the existing debt (from 3 separate banks) was paid off at a substantial discount. New debt finance was arranged at portfolio level and a focussed asset management programme to improve occupancy. A disposal programme is now under way to enable the return of equity capital to the original investors. 6 buildings have been sold successfully since September 2019.
